FMC (FMC) Inventory-to-Revenue : 1.62 (As of Dec. 2023)

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What is FMC Inventory-to-Revenue?

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. FMC's Average Total Inventories for the quarter that ended in Dec. 2023 was $1,862 Mil. FMC's Revenue for the three months ended in Dec. 2023 was $1,146 Mil. FMC's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 1.62.

FMC's Inventory-to-Revenue for the quarter that ended in Dec. 2023 declined from Sep. 2023 (2.07) to Sep. 2023 (1.62)

A decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. FMC's Days Inventory for the three months ended in Dec. 2023 was 239.12.

Inventory Turnover measures how fast the company turns over its inventory within a year. FMC's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.38.

FMC Inventory-to-Revenue Historical Data

The historical data trend for FMC's Inventory-to-Revenue can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

FMC Inventory-to-Revenue Chart

FMC Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory-to-Revenue

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0.22

0.23

0.26

0.27

0.38

FMC Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory-to-Revenue	Get a 7-Day Free Trial															1.04	1.33	1.96	2.07	1.62

Competitive Comparison of FMC's Inventory-to-Revenue

For the Agricultural Inputs subindustry, FMC's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

FMC's Inventory-to-Revenue Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, FMC's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where FMC's Inventory-to-Revenue falls into.

FMC Inventory-to-Revenue Calculation

FMC's Inventory-to-Revenue for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (A: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Revenue (A: Dec. 2023 )
=	( (1651.6	+	1724.6)	/	2 )	/	4486.8
=	1688.1					/	4486.8
=	0.38

FMC's Inventory-to-Revenue for the quarter that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (Q: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Revenue (Q: Dec. 2023 )
=	( (1998.6	+	1724.6)	/	2 )	/	1146.1
=	1861.6					/	1146.1
=	1.62

FMC (NYSE:FMC) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

FMC's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	1861.6	/	710.4	*	365 / 4
	=	239.12

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

FMC's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2023 )	/	Average Total Inventories (Q: Dec. 2023 )
	=	710.4	/	1861.6
	=	0.38

FMC Inventory-to-Revenue Related Terms

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FMC (FMC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » FMC Corp (NYSE:FMC) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

FMQ:Germany FMQ:Germany F1MC34:Brazil

Address

2929 Walnut Street, Philadelphia, PA, USA, 19104

Website

https://www.fmc.com

FMC is a pure-play global crop protection company with a fairly balanced product portfolio across geographies and crop exposure. Through acquisitions, FMC is now one of the five largest patented crop protection companies and focuses on the development of new products, including biologicals, through its research and development pipeline.

Executives

Robert C Pallash	director	17000 ROTUNDA DRIVE, DEARBORN MI 48120
Jacqueline Scanlan	officer: Executive VP & Chief HRO	HAEMONETICS CORPORATION, 400 WOOD ROAD, BRAINTREE MA 02184
Ronaldo Pereira	officer: EVP, President, FMC Americas	1620 MONK RD, GLADWYNE PA 19035
Nicholas Pfeiffer	officer: Corporate Controller	1735 MARKET STREET, PHILADELPHIA PA 19103
Patricia Verduin	director	ONE CONAGRA DRIVE, OMAHA NE 68102
Mark Douglas	officer: Pres., Agricultural Solutions	ROHM AND HAAS COMPANY, 100 INDEPENDENCE MALL WEST, PHILADELPHIA PA 19106
Vsevolod Rostovtsev	officer: VP & Chief Technology Officer	909 TWYCKENHAM ROAD, MEDIA PA 19063
Andrew D Sandifer	officer: EVP and CFO	FMC CORPORATION, 2929 WALNUT STREET, PHILADELPHIA PA 19104
Michael Finian Reilly	officer: EVP, General Counsel & Sec.	FMC CORPORATION, 2929 WALNUT STREET, PHILADELPHIA PA 19104
Kathy Lynn Fortmann	director	INTERNATIONAL FLAVORS & FRAGRANCES INC., 521 WEST 57TH STREET, NEW YORK NY 10019
Kathleen Shelton	officer: EVP, Chief Technology Officer	630 UNIVERSITY PLACE, SWARTHMORE PA 19081
Diane Allemang	officer: EVP & Chief Marketing Officer	1615 NORTH CLEVELAND STREET, ARLINGTON VA 22201
Carol Anthony Davidson	director
Eduardo E Cordeiro	director	C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
Volpe Vincent R Jr	director	C/O DRESSER-RAND GROUP INC, PAUL CLARK DRIVE, OLEAN NY 14760